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Rudd plays mind games with Abbott

Tony Abbott has so far declined to take Kevin Rudd's bait, but the temptation is there.

As the prime minister weighs up his options for the election date, he is playing a political game of chicken with the opposition leader.

But Abbott has put too much effort into crafting his core message - scrap the carbon and mining taxes, stop the boats and end the Labor chaos - to deviate now from what has been an effective opposition playbook.

Abbott also firmly believes Rudd shouldn't be allowed to skip over the record of the Gillard Labor government just because he's returned to the leadership.

One of Rudd's first attempts to wrong-foot Abbott was to challenge him to a series of debates, starting with debt and deficit at the National Press Club this week.

Abbott retorted if Rudd wanted a debate, he should recall parliament or call the election.

So Rudd went to the Canberra venue on Thursday and threw the same punches he would have thrown if the debate had gone ahead.

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"Mr Abbott ... is the nation's most formidable exponent of negative politics, and negative politics above all is designed to induce feelings of worry, of anxiety and fear in the community," he said.

"He and the Liberal party have concluded that fear is a far better political bet than engaging in a debate on the facts."

There's no question Abbott has fanned community fears about the hip-pocket and business impact of Labor's carbon tax, and fed off frustration over the lack of an effective solution to deter asylum seeker boat arrivals.

Living costs have been impacted by the carbon tax, albeit not to the extent Abbott predicted - recall "Whyalla will be wiped off the map".

This is reflected in the government's decision to compensate households with income tax breaks and other assistance.

The procession and housing of large numbers of asylum seeker boat arrivals is taking up an ever-increasing slice of the federal budget - money, opponents argue, could be better used for health, education or to pay off net government debt.

Rudd's now laid out a seven-point plan to deliver what a "national competitiveness agenda" - a convoluted way of saying business and unions should talk more about how to grow the economic pie.

Some of the agenda could have been taken from coalition policy: lower power prices, a more flexible labour market, cut red and green tape and support business, especially small ones.

Attending the 50th anniversary of the Yirrkala bark petitions - which effectively started the Indigenous land rights movements - Rudd again baited Abbott.

He implied the opposition leader was "buckpassing" on a proposed referendum to recognise indigenous people in the constitution.

Abbott, who's on record supporting constitutional recognition, argued it was Labor in September 2012 which deferred plans for a vote. (While superficially correct, Labor's decision was in line with recommendations to give the issue more time to gain traction in the community.)

However, Rudd's not just taking on the opposition.

He's also daring his own party to back historic changes to the way the parliamentary Labor leader is determined.

The Labor caucus meets at the Balmain Town Hall - one of the birthplaces of the ALP - on July 22 to decide whether to allow the leader to be elected on a 50-50 basis between grassroots members and MPs.

Some Australian unions say this version of the British model - which involves one-third unions, one-third MPs and one-third party faithful - would be more representative of ALP roots and attract new members.

While it might boost membership and bring others back to the fold, the proposal reduces the power of the caucus in leadership matters.

Rudd - whose return to the prime ministership has already made Labor more competitive against a previous coalition government walk-in - looks likely to get his way.

However, he may also have to offer political sweeteners to unions and factional bosses.

This may include - as flagged by ALP national president Jenny McAllister - union involvement in the "primaries" expected to be rolled out to select candidates for the NSW state election in 2015.

For now, Rudd is trying to balance campaigning for the election with some governing.

The government has signed Tasmania onto its $14.5 billion six-year schools funding plan, taking the total number of states and territories on board to four including NSW, ACT and South Australia.

It's also won the support of the influential independent schools sector, which could pressure those Liberal states still holding out.

Rudd heads to PNG on Sunday and will host a community cabinet in the central Queensland city of Rockhampton on Wednesday.

In the past three decades, only three federal party leaders have won government from the opposition benches: Rudd, John Howard and Bob Hawke.

If Abbott wants to join this group, he might do well to ignore the bait and play his own game.